TLS closes while Leaseway goes into administration
IF your business uses daily rental to flex van availability, there looks like being less choice in the market.
TLS, the daily van rental arm of US lightbulb-to-bank conglomerate GE has decided to call it a day at the end of the year and close its four remaining branches at Carrington (Manchester), Glasgow, Grays (Essex) and Wednesbury (Wolverhampton). At its peak, TLS had 28 depots.
An official statement from TLS read: “A decision has been taken to cease activity at TLS Vehicle Rental by the end of 2010. The decision was not taken lightly and came after extensive consultations with staff and equally exhaustive consideration of all viable alternatives.
“TLS experienced a dramatic reduction in business during the general economic downturn and, despite extensive efforts over the last two years, has been unable to sustain sufficient scale to remain a viable and ongoing concern.”
Meanwhile PwC has been appointed as administrators of the daily van rental firm Leaseway.
Established in 2003, Leaseway currently runs a fleet of around 13,000 vehicles with a wide spectrum of customers from large corporates to sole traders such as readers of Business Van Manager.
Bruce Cartwright, joint administrator and head of business recovery services at PwC in Scotland commented: “During the last 12 months, Leaseway has encountered trading difficulties that has made it difficult for the company to service its existing financial obligations.
“In response, the company’s directors have considered various options to deliver a restructuring solution that would provide a long term viable business. Unfortunately the directors have concluded that this will not be feasible and taken steps to place the company in administration to protect the business and assets.
“Our immediate priority is to continue trading the business, ensuring that commitments to contracted customers are met. Throughout this period, we will work closely with the existing management team, employees across all sites, suppliers and customers to try and ensure that we achieve a positive solution.”
Leaseway operates from six locations: Glasgow, Newcastle, Leeds, Manchester, Birmingham and London.